So, you have found the house of your dreams. You have the deposit, your pre-approval and you are ready to take the final steps to sealing the deal. How exciting! So, what are those last few steps to closing the deal? We have put together a guide to help you in the final steps of buying your new home.
Essential Steps to Prepare for Buying your First Home
1. Visit the Property Multiple Times
You will want to be absolutely sure that this is the property for you. Do so by visiting it several times, and especially at different times of day. That way, you can assess the traffic in the neighbourhood, the lighting in the home at various times of day, and the general noise of the surrounding property.
2. Get the Property Inspected
We would recommend that you get the property checked over before you make any official offers. You want to make sure that there are no major structural issues that could surprise you down the track. Consider a specialist report such as a Land Information Memorandum, and a builders and engineers report. An LIM is a report that will be issued by the local city or district council, providing all the information that is officially on file about the property.
3. Make an Offer
Be sure to get the guidance of your lawyer in this crucial step of the process. You’ll also need to decide the conditions of your offer if you are making a conditional offer. You must make your offer in writing and it must be done using the correct documentation.
What is an Unconditional Offer? This is a simpler offer to buy the property in accordance with the contract and its terms.
What is a Conditional Offer? This is an offer you make that has conditions attached, such as being satisfied with a building report.
Note that if you are buying a property at auction, you can only make an unconditional offer.
4. Have a Discussion with your Home Loan Specialist
It’s almost settlement day! But there are a few things to do before you secure the key and release the party poppers. You should have a discussion with your home loan specialist to talk about the different types of loan options. They can help you understand the different loan structures and repayment options.
5. Submit your Kiwisaver Application
Time to submit your Kiwisaver application. It can take up to 10 business days for this to process, although this can vary depending on the provider. Make sure you get your application in with plenty of time before your settlement date. You don’t want to have to push out your settlement date or miss out on using your Kiwisaver funds. Once your application is approved, the funds will be transferred to your lawyers trust account, which will be forwarded to the vendor of your property on settlement day.
6. Organise your Utilities
In the lead up to settlement day, you will want to organise your utilities such as power and broadband. Jump on Broadband Compare and Power Compare to compare the different providers and plans available to you so that you can find the cheapest deals possible for your unique household needs. When you move into your new home, make it a habit to compare regularly so you can always be on the best plans possible and avoid spending more on utilities than necessary.
Also jump on Money Compare to compare different home insurance options to give you the peace of mind while you enjoy your new home.
7. Settlement Day
You have made it! Congratulations. This is the date that you pay the balance for the property. So you’ll pay your deposit and your loan provider will pay out the loan. You may also get the keys to the property on this day. But you may have to wait until the settlement has gone through, and your lawyer has contacted the vendor or property agent in writing that it has taken place. Once a legal settlement has gone through, you will officially be a homeowner!
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